EV maker Fisker (FSR) went public last year through an SPAC deal with Spartan Energy Acquisition Corporation. With its innovative product offerings, the company could gain a significant foothold in the growing EV industry in the months ahead. However, given the current global semiconductor chip shortage and FSR’s negative profit margins, is the stock worth owning now? Read more to find out.Fisker Inc. (FSR), a Manhattan Beach, Calif.-based EV manufacturing company, went public last year through a reverse merger with Spartan Energy Acquisition Corporation, backed by private equity firm Apollo Global Management (NYSE:APO). The stock began trading on October 30, 2020 and jumped nearly 13% in price on its market debut.
However, closing yesterday’s trading session at $18.89, the stock is trading 40.9% below its 52-week high of $31.96, which it hit on February 2, 2021, indicating a downtrend.
In addition, concerns over the global semiconductor chip shortages’ effect on the EV industry may keep the stock under pressure in the near term. Furthermore, given the stock’s steep valuation and the company's weak financials, we think it could be a risky bet.